OBOSS Market Timing 6/6/2011 “OBOSS at -2.41″

OBOSS closed at extreme over sold levels today.  This indicates the market is over sold.  Normally we see a rally within a few days of hitting extreme levels.  We could still see some follow through to the downside taking us to -2.50, but within a short time we should see a relief rally.

If you’re buying this dip (with high quality stocks), keep in mind that this cycle up may just be a relief rally and we will have to see how strong it is in relation to the current trend before getting more aggressive to the up side.  SPY’s 50 day MA is leaning down (slightly) – mostly it is flat.  SPY is trading under the 50 MA so caution is advised and excessive risk taking should be avoided.  Overall the market is in a large trading range and we are now near the lower end of that range.

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